Financial security is imperative to every family. You need these savings to help give your children the best upbringing and to support yourself after you retire. The best way to both support yourself and to leave your children with something after you die is to think about long-term investments. One of the best places to invest is in the property market. When you own properties you can rent them out and benefit from a monthly income. You just need to know a Landlord’s responsibilities and insurance options for properties. Rent your old home out and you can move to the countryside and enjoy a passive income you and your family can benefit from.
Store Your Personal Belongings
If your children have moved out, it could be a smart idea to buy or rent a smaller property and rent out your family home for a monthly income. Before this can be done, however, you will need to clear your property of personal belongings and valuables that you don’t want your new tenants to break or damage. Furnished properties fetch a higher price than empty ones, meaning you can attract more types of tenants and increase the rent.
Have the Property Inspected and Serviced
As a landlord you will be responsible for the safety of the property. This means having a professional inspector coming in to ensure that there are no safety hazards and that key items like the water boiler has been serviced and is in good order. You will need to do this to prove that your property is fit to be rented.
Have the Right Insurance
You cannot rent out a property without adequately covering your property. Insuring your property when it is being rented out will be different than when you are living it. The insurance you need will be very similar, but it will be different based on the fact that you are renting it. This means your insurance will have to cover your property type and the number of tenants who would live in the property.
By knowing what is covered in your insurance you can adequately prepare your finances. You should always have money saved to cover the costs of fixes that your insurance wouldn’t cover. Though making sure that you are covered in case of fire, theft, or water damage will bring peace of mind. It is always wise to consider content insurance as well to cover any accidents occur, or if your furnishings are damaged for any reason.
Once you know what is included and not included in your insurance, you can draft up an appropriate contract for potential tenants. This is important to ensure that your tenants know and agree to, say, not sub-let your property, as this can violate your insurance policy. To find the right insurance policy that is right for you, read through this infographic on your responsibilities as a landlord and what to consider when applying for insurance: